Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes • Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning-PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000) (10,500) $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000 Pension Expense $ 210,000 68,000 10,500 $ 288,500 (288,500) 100,000 $ (188,500) Accumulated ОСI

Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes • Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning-PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000) (10,500) $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000 Pension Expense $ 210,000 68,000 10,500 $ 288,500 (288,500) 100,000 $ (188,500) Accumulated ОСI

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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